A Top Dog Tale with Preference Rigidities

Randon, Emanuela ; Simmons, Peter (2012) A Top Dog Tale with Preference Rigidities. Bologna: Dipartimento di Scienze economiche, p. 32. DOI 10.6092/unibo/amsacta/4004. In: Quaderni - Working Paper DSE (839). ISSN 2282-6483.
Full text disponibile come:
[thumbnail of WP839.pdf]
Anteprima
Documento PDF
Licenza: Creative Commons Attribution Non-commercial 3.0 (CC BY-NC 3.0)

Download (1MB) | Anteprima

Abstract

With preference rigidities we find Pareto optima of an exchange economy, some of which involve unconsumed endowments. We show that such Pareto Optima can only be attained as market equilibria if there is a top dog in the initial endowment distribution who is richer than the other individuals. The most inegalitarian efficient allocation favouring the top dog is globally stable and is in the core. For endowment distributions with a top dog, the core contains efficient allocations more equal than the market equilibrium. A voting mechanism or government policy can also offset the top dog’s power.

Abstract
Tipologia del documento
Monografia (Working paper)
Autori
AutoreAffiliazioneORCID
Randon, Emanuela
Simmons, Peter
Parole chiave
Exchange economy, Complements, Top dog allocation
Settori scientifico-disciplinari
ISSN
2282-6483
DOI
Data di deposito
04 Apr 2014 14:52
Ultima modifica
17 Mar 2015 13:32
URI

Altri metadati

Statistica sui download

Statistica sui download

Gestione del documento: Visualizza il documento

^